| Author (Person) | Chapman, Peter, Taylor, Simon |
|---|---|
| Series Title | European Voice |
| Series Details | Vol 6, No.1, 6.1.99, p4 |
| Publication Date | 06/01/2000 |
| Content Type | News |
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Date: 06/01/2000 By THE European Commission is fine-tuning a raft of sanctions which could be imposed on Russia for failing to protect the civilian population in Chechnya from its military campaign against separatists in the region. External Relations Commissioner Chris Patten has suggested that the EU could withdraw preferential trade terms for Russian exports to the Union, known as 'Most Favoured Nation' (MFN) status, unless Moscow ensures the safety of the civilian population in the Chechnyan capital of Grozny and allows humanitarian aid to reach refugees. Removing MFN status would mean that Russian exports to the EU would be subject to higher import duties, effectively raising the price of Russian goods for Union buyers. This could cut Russia's €10-billion trade surplus with the EU, which is due in part to Moscow's breaches of numerous trade agreements between the two sides. "There are a very large number of trade issues where Russia has violated agreements and where we have bent over backwards," said Patten recently, adding: "Suspending MFN status would have a major impact in some areas." Commission officials are currently working on a list of possible measures to be discussed by EU foreign ministers at their next meeting on 24 January. Union leaders announced at last month's Helsinki summit that they were considering a range of sanctions, including a review of two major cooperation agreements and switching funding under the EU's Tacis programme to priority projects dealing with human rights and the rule of law. But trade sanctions would give the Union the greatest leverage in its attempts to force Russia to rein in its forces in Chechyna. The debate comes as the Commission is preparing to impose penalties on Moscow in a row over a new Russian tax on ferrous scrap metal which could cost the EU steel sector millions of euro. Europe's powerful industry lobby group Eurofer is calling on the Commission to get tough on Moscow over a local tax which puts €15 a tonne on the price of imported scrap metal, insisting the levy is a clear breach of a bilateral agreement between the EU and Russia. Commission trade sources said this week that officials were ready to propose sanctions, likely to be a 10% reduction in Russia's steel export quota, "in the next two weeks". The delay will give Moscow a chance to respond to a last-minute plea to overturn the scrap tax delivered to the Russian ambassador in Belgium today (6 January). "If we do not stop the Russians, it is going to be difficult to stop the Ukrainians later," said the official, referring to the latter's plans to introduce restrictions on exports of scrap metal in breach of a bilateral agreement with the Union. If left unchallenged, the tax and Ukraine's mooted restrictions would cause an upward spiral in the world price of one of the steel industry's main raw materials. The European Commission is fine-tuning a raft of sanctions which could be imposed on Russia for failing to protect the civilian population in Chechnya from its military campaign against separatists in the region. |
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| Countries / Regions | Russia |
